Transnet's Underperformance: A Billion-Rand Daily Strain on South Africa's Export Economy

Transnet, the South African national logistics company, is severely underperforming and impeding the country's ability to export its commodities to the international market. According to reports, this is costing the country R1 billion per day, equivalent to 4.9% of annual GDP or R353 billion.

In particular, Saldanha Bay and Richards Bay are expected to export 3.3 million tons of iron ore and 4.3 million tons of coal this month, marking a new low for September since our records began in January 2015. These logistical rail constraints are forcing miners to seek alternative routes for exporting their products.

Magnetite, chrome, and coal miners are increasingly relying on trucks to transport their products through the port of Maputo in Mozambique. This shift has led to substantial truck congestion at the border, causing significant delays and disruptions in the transportation process.

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